In this article, we are looking through another QuickBooks Online Advanced hot tip. It is time to have functionality and QuickBooks to record the bookkeeping of a sales transaction, but not actually recognize the revenue until the appropriate intervals with this new functionality and QuickBooks Online you can recognize the revenue monthly.
Enabling the Revenue recognition feature
You want to enable this functionality by turning it on inside QuickBooks online advanced you are going to go over into your account and settings and make sure the slider is turned on to utilize this functionality.
Setting up services with revenue recognitionNext, you will need items in order to be able to have the revenue recognition turned on when you are looking at the screen there's a new
Revenue recognition box you want to check mark that when you are setting up your products and services and then you are going to need to add a liability account put in service intervals and then make sure that that item is what you're using in order to recognize revenue on your sales transactions.
Creating an invoice or sales receipt with revenue recognitionWhen creating an invoice, there are key pieces of information you want to ensure are visible. This is going to be your service date. I need to make sure it is something that is not in the past. It must be either that current date or a future date.
The description, quantity and rate are also something that you are going to want to make sure is correct.
Schedule of individual transactionsNext you are going to want to make sure you schedule these individual transactions so you can open up this Revenue recognition blue hyperlink. You can see the schedule that's going to tell you the date the income is going to be recognized.
You also can make sure that you got the correct liability account that's going to be hit every single month for the right amount. In addition, you can specify the income account.
- Recognition date
- Liability account
- Amount recognized
- Income account
Schedule for all customers and services
The report shows the following:
- The date the revenue
- The service item used
- The customer name
- The transaction ID
- The service date listed
- The amounts recorded
- The amount of income
This revenue recognition functionality is brand new and is something many of us have been looking for a while. Go test it out today.
Liz Scott is a multi-business entrepreneur working to bring together technology and accountants through her business, Liz Scott Consulting. A member of Intuit Trainer/Writer Network, she authored and taught Master level courses, including Advisory Guides and Consulting Tools for Accountants. In addition to Liz Scott Consulting, she also owns Accounting Lifeline, a firm to serve small businesses with their financial needs. Liz is a co-host of the "Appy Hour," which helps other accountants learn about the different tools and apps for small business needs. Holding a high passion for real estate investment, she owns properties throughout Oklahoma.
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